Jackson Hole Countdown: Will Inflation Tip the Scales?

Summary A data heavy week lies ahead, culminating in the Jackson Hole Economic Policy Symposium. Markets are poised for significant FX moves around UK CPI and activity data, FOMC minutes and Chair Powell’s address, and President Lagarde’s remarks alongside Euro Area PMIs. The near term direction for USD, GBP, and EUR will hinge on whether…

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Key Economic Data and Political Moves Set to Drive FX Markets This Week

Interest Rates & Inflation Region Interest Rate Inflation UK 4.00% 3.6% EU 2.15% 2.0% US 4.50% 2.7% Last week in FX markets: The pound experienced notable volatility, with GBP/USD edging higher amid firmer UK data suggesting an uptick in economic resilience. Stronger-than-expected inflation and employment signals helped buoy Sterling against the US dollar, as markets…

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Dollar on the Back Foot as Political Risks Rise

GBP: Trade Deal with the U.S. Supports the Pound The pound strengthened last week, supported by the announcement of a UK–U.S. trade agreement. The deal reduced tariffs on British automotive and aerospace exports, boosting optimism around UK trade and economic prospects. Sterling also benefited from broader dollar weakness. GBP/USD climbed from 1.3377 to 1.3726 over…

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Key Central Bank Decisions and Inflation Data Set the Tone

GBP Sterling saw muted movement early in the week, with GBP/USD drifting near 1.3545 and GBP/EUR retracing from 1.1775 back below 1.1730. Caution remains ahead of a key week for UK data and policy. Markets widely expect the Bank of England to hold interest rates at 4.25% on Thursday. However, signs of softness in the…

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Sterling Steady as UK Trade Talks Brighten, but Growth Concerns Linger

GBP Sterling traded within a relatively narrow range last week, showing modest upward momentum early on before surrendering gains towards the end of the week. A key supportive factor was renewed optimism surrounding the UK-India trade deal. Reports suggested significant progress had been made in negotiations, raising hopes that a long-awaited agreement could soon be…

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Currency Shifts and Central Bank Signals Define the Week

Market Overview: 7–13 April 2025 Currency performance: Commodities: Key Economic Events: 14–20 April 2025 This week features several significant economic releases and central bank decisions that could influence currency markets. United Kingdom Eurozone United States Latest Market Volatility: • GBP/USD: Reached a recent high of approximately 1.3182 on 14th April 2025, reflecting a 0.7% increase…

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